Annual General Meeting May 11, 2010

Transcription

1 A l G l M ti Annual General Meeting May 11, 2010

2 Forward Looking Statements This presentation includes certain forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information within the meaning of Canadian securities laws (collectively, "forward looking statements"). All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and resources, exploration results, production, cost estimates and future plans and objectives of the Company, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated i in such statements. Our forward looking statements are based on the beliefs, expectations and opinions of management on the date these statements are made, and we do not intend and do not assume any obligation to update any forward looking statements, other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward looking statements. See "Risks and Uncertainties" and Risk Factors in our most recently filed Management Discussion & Analysis and our Annual Report on Form 20 F, as amended, for the year endeddecember 31, We have not independently verified the accuracy of the information regarding the mining industry and other market data set forth herein. This information is not intended to provide and should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your own advisors as to the accounting, legal, tax, regulatory, business, financial and related aspects of making an investment in the Company. 2

3 Cautionary Note to U.S. Investors National Instrument Standards of Disclosure for Mineral Projects ( NI ) is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained or incorporated by reference in this presentation have been prepared in accordance with NI and the Canadian Institute of Mining Metallurgy and Petroleum Classification System. These standards differ significantly from the requirements of the SEC, and reserve and resource information contained herein and incorporated by reference into this presentation may not be comparable to similar information disclosed by U.S. companies. In this presentation, we use the terms measured, indicated and inferred resources. U.S. investors are cautioned that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under U.S. standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. U.S. investors should also understand that inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, U.S. investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of contained ounces is permitted disclosure under Canadian regulations; however, the SEC only permits issuers to report resources as in place tonnage and grade without t reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this presentation, including the documents incorporated by reference therein, may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC. NI also permits an historical estimate made prior to the adoption of NI that does not comply with NI to be disclosed using the historical terminology if the disclosure: (a) identifies the source and date of the historical estimate; (b) comments on the relevance and reliability of the historical estimate; (c) states whether the historical estimate uses categories other than those prescribed by NI , and if so, includes an explanation of the differences; and (d) includes any more recent estimates or data available. 3

4 Executive Management Mike Anglin, President, CEO and Director Mr. Anglin has a mining career of more than 20 years acting in senior management roles with BHP Billiton, including Vice President Operations & Chief Operating Officer, Base Metals Group, in Santiago, Chile. His extensive international experience has encompassed multi site management to technical, functional and business development. He holds a Bachelor of Science (Honours) in Mining i and a Master of Science Si from the Royal lsh School of Mines, Imperial lcollege, London Joe Ovsenek, SVP Corporate Development Since joining Silver Standard in 1996, Mr. Ovsenek s role has included responsibility for corporate and securities compliance, technical project evaluation, negotiating financing and property transactions, and strategic development. He holds a Bachelor of Law degree from the University of Toronto. Mr. Ovsenek is a registered professional engineer and holds a Bachelor of Applied Science degree from the University of British Columbia George Paspalas, SVP Operations Mr. Paspalas has held a broad range of executive, technical and operational positions in mining and project development. His career includes 18 years at Placer Dome Inc., in roles including General Manager of the Osborne and Granny Smith mines in Australia, and Senior Vice President Projects Technical Development across all major mining regions. He holds a Bachelor of Engineering (Chemical) degree with Honours from the University of New South Wales Ken McNaughton, VP Exploration Mr. McNaughton has been Vice President, Exploration, since He has been responsible for all facets of the Company's exploration activities including project generation to resource definition and early stage engineering evaluations. Mr. McNaughton holds a Bachelor of Applied Science degree and a Master of Applied Science degree in geological engineering from the University of Windsor Tom Yip, VP Chief Financial Officer Mr. Yip joined Silver Standard in Mr. Yip held the position of Vice President and Chief Financial Officer at Asarco, LLC. He also held finance roles of increasing responsibility at Echo Bay Mines Ltd., including Vice President, Finance and Chief Financial Officer, before the company merged with Kinross Gold Corporation in He is a chartered accountant and holds a Bachelor of Commerce in Business Administration from the University of Alberta 4

5 The Silver Standard Team Operating safely Respecting our communities Developing quality teams for all aspects of our business Focusing on growth through project delivery Building on our exploration success Delivering value for our shareholders 5

6 Safety and Sustainability Strategic safety leadership Awareness of our risks Focus on our people Emphasis on balance Board s Safety and Sustainability Committee oversees our processes and activities Emphasis is on fostering a culture of responsibility throughout the organization Record of safe construction at Pirquitas: 2.9 million man hours with zero fatalities and LTIFR of 0.96:200,000 hours Establishing mutually beneficial partnerships with our all stakeholders and maintaining continuous, open communication is foundation of our sustainable development Long term approach to planning for environmental impact from early stage exploration through to mine closure 6

7 Silver Producer Focused On the Americas Strong growth pipeline Canada Snowfield (100%) Gold copper silver Brucejack (100%) Gold silver Mexico Pitarrilla (100%) Silver lead zinc San Agustin (100%) Gold silver Legend Production Growth Exploration Pipeline Peru Chile San Luis (70%) Gold silver Berenguela (100%) Silver copper Challacollo (100%) Silver copper Argentina Pirquitas Mine (100%) Silver tin zinc Diablillos (100%) Silver gold 7

8 Large Silver and Gold Asset Base (8) (at December 31, 2009) Total Silver Reserves & Resources (mil oz.) Proven & Probable Reserves Measured & Indicated 1, Resources Inferred Resources Peru 5% Australia 5% US 15% Canada 13% Chile 2% Mexico 43% Argentina 17% Total lgoldr Resources (mil oz.) Measured & Indicated 26.3 Canada Resources 91% Peru 1% Inferred Resources 16.3 Mexico 6% Argentina 2% 8

9 Accretive Growth in Silver (1) Silver Reserves and Resources Per Share Silver Reserves and Resources ( 000 oz Silver) (oz per share) 2, , , Inferred Measured & Indicated Proven & Probable Inferred per share M&I per share P&P per share 9

10 Accretive Growth in Gold (1) Gold Resources Per Share Gold Resources (million oz Gold) (oz per share) Inferred Measured & Indicated Inferred per Share Measured & Indicated per Share 10

11 Production: The Pirquitas Mine Pacificc Ocean BOLIVIA Pirquitas i i Mine i Jujuy Abra Pampa San Pedro de Atacama S l Salta Susques Humahuaca Antofagasta CHILE San Salvador de Jujuy San Antonio de los Cobres Diablillos Project Salta ARGENTINA Mine Highway Road Concentrate route km 11

12 Pirquitas By the Numbers (2) Proven and Probable Reserve: million ounces silver Mining Rate: 6,000 tpd Processing Rate: 4,000 tpd LOM average silver recovery 78% LOM average metal production: Silver: 8 to 10 million ounces Tin: 4.4 million pounds Operating Costs: LOM average projected dto be $26 per tonne One of the world s largest primary silver mines 12

13 Open Pit and Process Facility Open Pit Looking North Ball Mill Concentrator Powerhouse Warehouse 13

14 Pirquitas Up and running Mine and processing plant operating at capacity Processed sulphide in transition ore in Q1 and produced 609,258 ounces of silver Optimization has improved recoveries: Aprilproductionproduction 535,400 ounces of silver Expected to process sulphide ore at full capacity by end Q2 Tin circuit commissioned Mine will begin producing zinc concentrates in Q2 available for sale in Q production guidance: 7 million ounces silver and 800,000 pounds tin 14

15 Growth: San Luis JV Project, Peru Roads Pierina Mine Veins Exploration Exploration Potential Potential Roads Veins Base Metal Base Metal Mineralization Mineralization Roads High grade High grade gold and silver project (Ayelén vein) Large, prospective land package near Barrick s world class Pierina gold mine 15

16 San Luis Project Reserves Cross Section 4550m 4450m 4350m 4250m S Drill Hole Pierce Point Surface Trench Location Proposed Underground Development > 5 g/t Gold g/t Silver metres N San Luis Project Mineral Reserve Summary * Tonnes Silver (g/t) Gold (g/t) Contained Silver Contained Gold Proven 56, ,093,690 51, Probable 447, ,125, ,348 Total 503, ,219, ,484 *Based on a cut offgrade of6.9 grams ofgold equivalentper tonne and estimated using US$800/oz gold, US$12.50/oz silver and metallurgical recoveries of 94.0% for gold and 90.0% for silver. See news release dated May 10,

17 Feasibility Study Financial Summary * Development and Operating Statistics i Financial i Analysis Summary (Capital amounts in US dollar millions, throughput in tonnes per day, operating costs in US dollars and production in ounces) Development Capital $90.4 Working Capital 4.7 Mill Throughput 400 Recovery Silver 90.0% Gold 94.0% Operating Cost per oz silver only $13.10 per oz silver net gold (20.37) per oz gold only $313 per oz gold net silver 14 (Prices in US dollars per ounce, Net Present Value in US dollar millions) Base Case Price Spot Case Price 2 Year Avg. Case Price 5 Year Avg. Case Price Silver Price $12.50 $17.40 $14.78 $13.10 Gold Price 800 1, Internal Rate of Return 26.5% 56.6% 40.4% 25.3% Net Present Value (5%) $39.2 $105.6 $68.7 $36.7 $80,000 $70,000 $60, Production LOM Average Total Silver 1,613,703 6,454,810 Gold 67, ,031 Silver Equivalent 5,664,160 22,656,642 5% (US$'000) Net Present Value, $50,000 $40,000 $30,000 $20,000 $10,000 *See news release dated May 10, 2010 $ Variable % Change Metal Production Opex Capex 17

18 Growth: Pitarrilla Project, Mexico (4) Pitarrilla Reserves & Resources Summary June 2009 Tonnes Silver (mil) (g/t) Probable Measured 41.8 Indicated Inferred Lead* (%) Zinc* Contained (%) Silver (mil oz.) N San Francisco de Asis Torréon New / Upgraded Road Casas Blancas Pitarrilla Project Durango Durango km Approximately T ll R Toll Road d Highway Dirt Road Railroad *Pitarrilla s lead and zinc measured, indicated and inferred resources are contained in the Breccia Ridge Zone in 14.6 million tonnes, million tonnes and 24.8 million tonnes, respectively. 18

19 Exploration Expertise Delivers Value Diverse exploration portfolio Projects are silver dominant, but include gold, copper, zinc, molybdenum and lead Projects are Americas focused Successful exploration team Objective: amass large land packages in prospective regions or existing mineral belts to test for world class deposits Management has a long term track record of discovery 19

20 Snowfield and Brucejack Projects, B.C. (6) Mitchell Zone Seabridge Gold Snowfield Zone Snowfield Project (SSRI 100%) Brucejack Project (SSRI 100%) SG Zone West Zone Galena Hill Mammoth Zone Electrum Zone Bridge Zone 0 1,000 2,000 metres 20

21 Exploration: Snowfield Project (6) 1700 RL SF RL MZ RL 1100 RL MZ RL 700 RL S metres Volcanics N Drill Hole Mineralized Intersection Gold mineralization Gold copper mineralization Snowfield ldresource Summary December 2009 (Based on a cut off grade of 0.35 grams of gold equivalent/tonne) Category Tonnes (millions) Gold (g/t) Silver (g/t) M+I Inferred Copper (%) Moly (ppm) Gold (mil oz.) Contained Silver (mil oz.)

22 Exploration: Brucejack Project (6) Snowfield ldproject (6 km north) Mammoth Zone SG Zone Seabridge Gold KSM Project SU 13 West Zone 1.21 g/t Gold 57 m Galena Hill Bridge Zone SU kg/t Gold kg Silver 1.5 m SU kg/t Gold kg Silver 0.5 m Brucejack Resource Summary December 2009 (Based on a cut off grade of 0.35 grams of gold equivalent/tonne) Tonnes Gold Category (millions) (g/t) Silver (g/t) Gold (mil oz.) Contained Silver (mil oz.) M+I Inferred SU g/t Gold 552 m 22

23 Growth Pipeline Grass roots Exploration Growth Production Snowfield, Canada San Luis, Peru Americas generative exploration programs Brucejack, Canada San Agustin, Mexico Berenguela, Peru Challacollo, Chile Pitarrilla, Mexico Diablillos, Argentina Pirquitas, Argentina largest growth profile amongst silver producers 23

24 Footnotes 1. Basedoncompany sharesoutstanding asatdecemberat 31, Pleasealsorefer also to footnotes8 and See Technical Report on Mina Pirquitas, Silver, Tin and Zinc Project, Jujuy Province, Argentina dated September 29, 2008, filed on SEDAR and available on the company s web site. 3. See the Updated Mineral Resource Estimate San Luis Project, Ancash Department, Perú, dated January 9, 2009, filed on SEDAR and available on the company s web site. Silver Standard currently holds a 70% interest in the San Luis Joint Venture. 4. See the NI Technical Report PitarrillaProperty Property Pre feasibility feasibilitystudy dated September 21, 2009 (This report shouldbe read in its entirety for additional information regarding the assumptions and key parameters included in the annual silver production, capital cost and financial analysis estimates), as well the Technical Report and Resource Estimate on the La Pitarrilla Project, Breccia Ridge Deposit, Durango, Mexico, dated August 26, 2008, and the Technical Report on the Pitarrilla Property, Durango, Mexico, dated September 28, 2006, filed on SEDAR and available on the company s web site. 5. See the Technical Report on the Diablillos Property, Salta and Catamarca Provinces, Argentina, dated July 27, See the NI Technical Reports "Technical Report and Updated Resource Estimate on the Snowfield Property" and "Technical Report and Resource Estimates on the West, Bridge, Galena Hill, Shore, SG & Gossan Hill Gold & Silver Zones of the Brucejack Property" effective December 1, 2009 and filed on SEDAR January 14, Mineral resources for the December 2009 estimate are defined within an optimized pit that incorporates project metal recoveries, estimated operating costs and metals price assumptions. Parameters used in the estimate include metals prices (and respective recoveries) of US$800/oz. gold (75%), US$12.00/oz. silver (73%), US$2.50/lb. copper (85%) and US$10/lb. molybdenum (60%), as applicable. The pit optimization i i utilized the following cost parameters: Mining i US$1.75/tonne, Processing US$5.00/tonne and G&A US$1.00/tonne along with pit slopes of 50 degrees. Contained metal may differ due to rounding. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. 7. See the NI Technical Report SanAgustin Resource Estimate effective March 30, 2009 and filedonsedarapril16 April 16, For a breakdown of Reserves and Resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Silver Standard s Reserves and Resources, see Silver Standard s Annual information Form/ Form 20 F (Amended) on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission and the Mineral Reserves and Resources Summary dated February 2, 2010, available on the company s web site. Percentages by country are calculated on a gross metal value basis combining all resource and reserve categories using metals prices at February 2, Total ounces per share represent the sum of proven and probable reserves, and the sum of measured and indicated mineral resources divided by the number of shares outstanding. Proven and probable mineral reserves, measured and indicated mineral resources and inferred mineral resources are separate categories under NI Please refer to the Cautionary Note to US Investors at the beginning of this presentation. Silver Standard s exploration programs are designed and conducted under the supervision of Kenneth C. McNaughton, M.A.Sc., P.Eng., Vice President, Exploration, Silver Standard Resources Inc. 10. Based on company shares outstanding at March 22, Please also refer to footnotes 8 and 9. 24

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